The real stories from inside the F1 paddock

A Sauber sale?

Sauber has been sold quite a few times. The first time was back in 1995 when Red Bull boss Dietrich Mateschitz purchased a majority shareholding in the team, although Peter Sauber retained the voting rights and so remained in control. In 2001 the two parties fell out over drivers (Mateschitz wanted Enrique Bernoldi and Sauber wanted Kimi Raikkonen) and the shares were passed on to Credit Suisse. At the end of 2005 BMW acquired the shares owned by Credit Suisse, while Peter Sauber retained a 20 percent stake but gave up his voting rights, although the team continued to be known as BMW Sauber. Four years later BMW gave the team back to Peter. The one strand throughout the process was that the Sauber name remained and this, it seems, is a primary consideration. Peter Sauber likes being the most famous team owner in Switzerland and is not overly keen on becoming the most famous ex-team owner, unless that is absolutely necessary. This year Sauber has been in need of money. There is a deal in place for the Russian government-controlled technology firm Rostec to become the team’s primary sponsor, but a sponsorship contract is worth nothing if the cash does not arrive and all the indications are that the Russians have been talking a good game, but not delivering. Yes, there may be problems relating to Ukraine and sanctions but the bottom line is that the time has come for them to sh*t or get off the pot.
With the Russians dithering, Sauber was hoping for other options, but the Simona de Silvestro option seems to have evaporated because the team needs her to bring money, rather than waiting for money that may or may not come if she was an F1 driver. Simona has not been seen at a race since the early summer and a decision is needed soon because sitting out two seasons without racing is not wise. No-one in F1 is likely to take her because of the risk factors involved and the only option would appear to be to return to the US and give up on the F1 dream. That is a bad idea given that a moderately-successful female F1 driver would be a huge bonus for the sport, but if no-one will give her the chance and she cannot pay for it then perhaps that is the wisest course of action. In a normal business, the promoter might size up the potential value of a woman F1 driver and invest to make it happen… but, of course, this is not a normal business.

An intriguing new element emerged in the days before Monza, with the suggestion that Canadian businessman Lawrence Stroll was taking an interest in investing in the team. Stroll has made inordinate amounts of money by buying the rights to fashion designers (he started out rich) and building up the brands. He did it with Tommy Hilfiger in the 1990s and more recently did the same thing with Michael Kors. He has also been involved with Pepe Jeans. Stroll has just sold about $1 billion worth of Michael Kors shares and is on the prowl for a new business. He is now reckoned to be worth around $2.3 billion and he is not afraid to spend his money. Having said that Stroll was involved with Team Lotus back in 1994 but did not come in as the white knight that was hoped for. He let the team die. There is a difference today because he now has a teenage son who may be quite a useful prospect. Lance Stroll is a Ferrari Young Driver and rumours suggest that his father has already bought control of the Prema Racing Formula 3 team in order to ensure that everything goes well for his son. The suggestion was that Stroll Sr would buy Sauber to make sure that his son gets into F1. It remains to be seen if Stroll delivers this time. In the interim the Dutch believe that Giedo Van der Garde has already signed a from contract to race for Sauber in 2015. The team is saying nothing at the moment the Dutchman cannot afford to stay out of racing for a second season and so needs to nail down a deal as quickly as possible. His backing comes from the Dutch fashion brand McGregor.

Share this:

Related

46 Responses

I like the bit about Peter Sauber wanting to keep the name on the car even though he doesn’t own a majority of the company, says a lot that.
Is this the reason the Stroll buyout has apparently fallen over at last moment.

Had his name not been still on the team, it might have demised, for Peter S IIRC quoted Minardi’s lament, that he left his name in the sale and so when Sauber hit difficulty, Sauber committed a lot of his private fortune to return.

That may have been a clever excuse, but the financial commitment and risk was very real, and not insignificant to Sauber. I believe him to be a proud man, rightfully so. But I do not think he is immodest, or egotistical purely to care for his name. He reappeared as a owner, I think genuinely reluctantly.

So that’s a red herring out of water up the wrong stream, in my log book.

If wilder speculation may be permitted: would not a potential purchaser of the sport (by whatever logic) be interested enough to go to lengths to get sight of the books for any teams that might be on the block?

Though that’s a fraught speculation, in terms of the shade of grey of ethics involved, I do not think it is illegitimate investigation.

I say this, because, if I had the money to take a substantial stake in F1, I would first go shopping for a team or three.

Well Stroll Snr sounds like an interesting guy, and a billionaire to boot eh? With a nod to the late, and wonderfully funny, Rob Walker, maybe Mr Stroll’s billions would enable him to run an F1 team long enough, for him to become an ordinary Millionaire instead?
If as you indicate, SDS isn’t getting a race or two, that would be sad as she looks to be a decent driver, and F1 is missing a huge revenue boost from female orientated sponsors, who I would have thought, could also make a mint out of sponsoring a marketable, fast, and good looking young lady, in a sport that is firmly stocked with male only drivers. Seems a waste, some team really ought to put a female driver in their car soon, the 21st century is plodding on and no one has the brains to do it although Sauber deserve credit for trying her out at least.

I’ll be a little catty, and say I reckon Stroll Sr. is a vain man. I first came across his name, when down with the flu, and reading up on historic Ferraris. His commissioning of – I forget which model – Pininfarina, to make new coachwork, entire so that “only 10% of Ferrari enthusiasts might spot any difference” whatsoever from the stock model, inclines me to think he may be vain. Making a fortune in fashion might be a indicator, also.

In a similar flight of fancy thought: maybe this explains so fleeting a apparent interest? And of course, he’s only right to look about, after his young son’s interest, given the new era of pay drivers. I think he’s bargain hunting, whether seriously or not, whether for a team or a future seat for his boy. Men I have known in the cloth trade are culturally inveterate bargain hunters. And, to complete a caricature, not natural business builders.

Well Stroll certainly loves both motorsport and Ferrari, so it makes some sort of sense that he would want to buy into F1 through the team that has been acting essentially as Ferrari’s B-team for many years. He did a pretty good job in sensitively bringing the old Saint-Jovite circuit up to modern standards without losing too much of the feel and character of the place, and he did that mostly through employing people who know more about that sort of thing than he does. That bodes well if he does decide to take on the Sauber challenge…

It’s a shame that apparently the Simona De Silvestro idea didn’t seem to work, I wonder if she might be a contender for a seat at Haas, I know she’s not American but she’s spent a lot of time there and I think if given the chance she could do really well.

Yes, Owen, she’s got to be the most talented, strong and capable female single-seater pilot ever. They should put her in an open test the way Frank Williams used to do and see how she does against Sutil, Guiterrez and whomever and I think she’d be on pace with them. If she’s as quick, there is no reason they shouldn’t be able to work a sponsorship deal with one of a multitude of companies looking to grow their female market. As long as she’s at least a mid-field driver (i.e. Sutil/Guiterrez), I don’t understand how she wouldn’t be a big draw and a great sponsor platform. Seems incredibly doable.

Very sadly what is happening to Robin indeed. I would rate him higher and if I had that kind of money or influence I’d have him over Giedo….of course we have half a Dutchie in next year and I am happy for him. But I haven’t made up my mind about Max and him entering at 17….

Maybe Stroll talked to Tony Fernandes and sobered up. Buying an F1 team without budget caps and adequately equitable income splits with the promoter is a good way to become a millionaire, if you’re a billionaire. Sauber must be running on absolute fumes at this point, running a sponsorship bare car for how many years? Amazing they are still on the grid.

You hardly need a private audience to guess what TF might say… but I see similarity also between the two men, between fashion and pop music, and marketing emphasis. That might be more sound reason. TF’s complaint about cost caps… I’ve said plenty enough about already…

Qadback appears to be missing from that list of buyers Joe…..(sarcasm). I must say, the description of the Caterham buyers/consortium sounds similar to how Ijaz’s bid to buy into Lotus was presented and he runs his securities biz from CH…same ‘no money’ result too!

If sanctions are applied, you can bet your bottom dollar, they are most studiously applied to individuals who are firmly not on the Christmas card list, and never will be.

Russia is still given to problems with flight capital. Probably they do as good a job curtailing the worst of that, as we do, keeping a lid on undesirable money flows into our economies, and out of arbitrary capture.

But as I keep mentioning, indirectly, anything that is a money pit, anything which is a marketing write off potential, anything which does business so far abroad as formula one, is a highly desirable launderette.

I am surprised there have not been scandals of that nature, in recent years. But for the most part, smaller counties, such as Cyprus, provided legitimate routes through.. with Cyprus the best way to put it is very skeletonal laws. Now that is no longer a route. Even if it is still possible, their economy has shrunk so much it cannot process such capital flows.

Therefore it is conceivable, that we are seeing a direct result in F1, of political and economic tectonics. Including more interest. I expect more interest forthcoming, after Sochi.

I’ve always thought F1 teams with a ‘figurehead’ really benefit when it comes to connecting with fans in a way that faceless corporations do not.

Ken Tyrell, Colin Chapman, Frank Williams, Bruce McLaren, Enzo Ferrari etc etc all real characters and their teams are respected, loved (and in some cases fondly remembered) in a way that the Red Bull’s of this world are unlikely to be in years to come.

The great thing about Peter Sauber is his time within the sport, the problem is that I can’t remember him saying / doing anything of real lasting significance in the 20 odd years he’s been there. A very respectable team that’s often punched well above its weight however it’s a name that could disappear tomorrow and be forgotten quickly.

There’s an interesting comparison to be made to Jordan, who came it at the same time, burned brightly for a few years then faded away (though layed the foundations of the relatively successful Force India). And Jordan did it without Mercedes and Red Bull money too. To me, Sauber will always be Heinz Harald Frenzen pootling round on a fuel heavy one stop strategy for sixth place while the rest of the field went racing…

True comments, and all those you mention were / are racers, Peter sauber included. Now, question, how enthusiastic can you , I or anyone else get about Coca Cola, Amazon, Google etc etc, no figurehead that we can find attractive/unattractive, and no sense of attachment to the companies either….as in all aspects of life it is people who count, not logos!

He could have meant virtue new owners and technical partnerships. I might be inclined to such a prediction, in a unhappy, cynical, worried, moment.

But I’m not Adam Parr, and as much as I respect him, his comment means little unless explained further.

Maybe he misses F1. His graphic book, well worth a look if, only because it is sui generis, in so often so inarticulate a game, seemed like a bit of a ode, a lament to a estranged wife, not a divorcee’s suit.

If so, I don’t follow his twitter feed, or any lately, but that would be one way of hinting he’s available. At better way to send a hint, than to make a plausible – at – a – stretch prediction, that you know will get coverage, if only because of the way the “reporting” works. Note to traditional magazine editors (all subjects): twitter feeds and things like that exist so fans can follow whatever chit chat they like. That to me is the whole point of those things. Reporting on twitter feed, at any time other than as a reference in context, is almost insulting, when you think about it. Do I want to pay for a magazine, to end up recycling what was only ever thought appropriate for casual social twittering? Oh, it’s free to read those news pages? Oh, okay.. but am I not capable to grab all the twittering I like, more immediately, more simply.. and so on and etcetera.

Must admit I’ve long admired Peter Sauber since watching his sports cars in the late 80’s. No sure if it’s an accurate assessment but from afar he seems a genuine ‘racer.’ Joe, I was wondering how much the teams location, far from the F1 epicentre, has impacted Saubers ability to move up the grid and also if this would affect the teams value?

The location of the headquarters, just like Ferrari, is rarely a problem. It has a price tag. Only occasionally does one find an engineer unwilling o work aboard. In this respect Sauber is better than Ferrari because of the tax benefits for rich folk in Switzerland.

Presumably, resource restrictions applying also, many are consultants, booking salaries through tax efficient schemes, working for their own companies under contract, at Ferrari..

From what I understand, though heavily oversubscribed, whether expatriate
“American schools”, or local admission, education quality is a real attraction in Switzerland.

People think they would never move to work expat, but time of life and needs of children are enormous changers to that equation, and there’s a good pitch for either team to make.

The thought that interests me most, however, is whether F1 can only “support” two teams outside the traditional cluster. Just by virtue statistics, demographics, income economics, and so on. Toyota and Cologne was a bold move. I don’t know enough what really caused that to demise, but the money they had could have built a kind of mini cluster, around wind tunnel facilities and consultancy possibly. But then I think they should have done something to “stick out less”, dual homed, or something. Cologne is not hard to get to, and a very nice part to live in. But insisting on the location means you just don’t get to talk to so many people, ruled out too early. Was it around Bournemouth and the New Forest, that Ron wanted first to situate McLaren? He bought land early on, some place different than Working.

I’m not dissenting from Joe saying it’s not a problem, the location. Instead noting the variables that just make it anyhow a complicated choice. Maybe more recently, economics is the key: highly paid jobs are ever more valuable. And much of the team is traveling, And stealth taxation is making expatriate life more attractive. Not that anything quite severs the tax man’s hand from your wallet, though that’s another discussion, quite how blatant are “stealth taxes” and how close to pernicious penalization.

Refresh my memory: If I recall, the main reason BMW kept the Sauber name was so they didn’t have to go through the process of renaming the car, which I believe has various political implications relating to prize money etc?

Regardless of where the money comes from I really hope Sauber can secure their future and get back as regular top 10 runners. I’ve always liked the way they go about their racing – low key, letting the results do the talking. It says a lot that when times were good rather than lining their pockets they spent large on state-of-the-art wind tunnel and super computer. That was a wise move which no doubt attracted BMW but more importantly has keep them going fairly well during these lean times. I wish they could afford to get two drivers on merit rather than money though. Bianchi and Vergne would be good.

When I originally commented I clicked the “Notify me when new comments are added” checkbox and now
each time a comment is added I get several e-mails with the
same comment. Is there any way you can remove me from that service?